Morgan Stanley has adjusted its price target for Manulife Financial (MFC, Financial), increasing it to $46 from the previous $43. The firm has maintained its Equal Weight rating on the stock. This adjustment is part of Morgan Stanley’s review of the Life Insurance sector, with the analyst highlighting that core results have been stable. There is also an expectation for a rebound in the second half of 2025. The firm considers the overall valuation within the sector to be appealing.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Manulife Financial Corp (MFC, Financial) is $27.29 with a high estimate of $27.29 and a low estimate of $27.29. The average target implies an downside of 14.37% from the current price of $31.87. More detailed estimate data can be found on the Manulife Financial Corp (MFC) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Manulife Financial Corp's (MFC, Financial) average brokerage recommendation is currently 1.0, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Manulife Financial Corp (MFC, Financial) in one year is $24.28, suggesting a downside of 23.82% from the current price of $31.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Manulife Financial Corp (MFC) Summary page.
MFC Key Business Developments
Release Date: May 08, 2025
- Asia APE Sales: Increased 50% reflecting strong customer demand.
- Core EPS: Increased 3%, with a potential 9% increase after normalizing for specific charges.
- LICAT Ratio: Strong at 137%.
- Leverage Ratio: 23.9%, below the 25% medium-term target.
- APE Sales Growth: Increased 37% year-over-year.
- New Business Value: Grew 36%.
- New Business CSM: Increased 31%.
- Global WAM Net Flows: Positive $0.5 billion.
- P&C Reinsurance Charge: $35 million pretax related to California wildfires.
- ECL Provision: $46 million pretax charge due to economic conditions.
- Global WAM Core Earnings Growth: Over 20% growth for the sixth consecutive quarter.
- Asia Core Earnings Growth: 7% year-on-year.
- Global WAM Core EBITDA Margin: 28.4%, expanded 290 basis points from the prior year.
- Canada APE Sales Growth: Increased 9% year-over-year.
- U.S. APE Sales Growth: Increased 6%.
- Adjusted Book Value Per Share: Grew 12% to $36.66.
- Capital Returned to Shareholders: Over $1.2 billion during the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Manulife Financial Corp (MFC, Financial) reported strong growth in Asia with APE sales increasing by 50%, driven by high demand in markets like Hong Kong, Singapore, and Mainland China.
- The company maintained a robust balance sheet with a LICAT ratio of 137% and a leverage ratio of 23.9%, indicating strong financial resilience.
- Global WAM continued to deliver positive net flows of $0.5 billion despite market volatility, showcasing the resilience of its diversified business model.
- Core EPS increased by 3%, supported by share buybacks and strong performance in Asia and Global WAM businesses.
- Manulife Financial Corp (MFC) successfully executed de-risking strategies, including reinsurance transactions, reducing its book value sensitivity to interest rate and equity market movements.
Negative Points
- The company faced a $35 million pretax charge in its P&C reinsurance business due to the California wildfires.
- A $46 million pretax ECL charge was recorded, driven by updates to reflect the deteriorating economic environment, impacting core earnings growth.
- The U.S. segment experienced a 25% decrease in core earnings due to unfavorable net claims experience, lower investment spreads, and increased ECL provisions.
- Manulife Financial Corp (MFC) reported a non-core charge of $781 million from realized losses, mostly from fixed income asset disposals related to its LTC reinsurance transaction.
- The ALDA portfolio experienced negative returns, particularly in real estate and private equity, disrupting the trend of sequential improvement in ALDA experience.
